Amru Rice, a leading local rice miller and exporter, yesterday inaugurated rice-storing facilities in Kampong Thom that were financed through a government-led lending scheme.
The new warehouse and silo will help stabilise the price of rice and increase exports, Amru said. They have cost $5 million and are located in Prasat Balang district.
Amru rice is one of three rice millers awarded loans from the government to build rice storage facilities since October.
The loans are part of a government lending scheme that makes low-interest loans, known as ‘emergency loans’, available to agricultural firms that want to build rice storage facilities in four rice-growing provinces – Battambang, Kampong Thom, Prey Veng and Takeo.
The initiative aims to boost the provinces’ storage capacity during harvest season as well as bolster paddy prices for farmers.
The loans are disbursed through the Rural Development Bank (RBD) and are repaid at a five percent interest rate over a period of 10 years.
Song Saran, owner of Amru rice, said the facilities can handle between 150,000 to 200,000 tonnes of rice a year. He said they have been built by a Thai company using state-of-the-art technology.
He said the facilities will benefit farmers in Kampong Thom, Preah Vihear and Siem Reap province.
“So far, we have around 50 farming communities supplying us. The launch of the new warehouse comes at just the right time to welcome the harvest season that will start in August and September.”
“Our achievement today will ensure prices remain stable for our farmers and will allow us to export more high-quality rice abroad,” he added.
In 2016, the government launched its first one-year emergency loan offer through the RDB to help the rice sector. The emergency fund for the year 2016-2017 consisted of $27 million, but for the period 2017-2018, it was increased to $50 million.
